EU announces its Iran conclusion report!
– The Europ Union council announced its Iran conclusion report just the other night stressing on concerns they have with regards to the country’s actions in the region as well as positive steps that have been taken so far. The most important points of this statement are as below:
- EU supports Iran’s actions adhering JCPoA and all its members perceive that removal of economic sanctions is vital to keeping the agreement alive;
- EU council welcomes all endeavours Iran have taken so far with regards to implementation of FATF related amendments. This council expects Iran to implement the remaining changes as promised;
- EU despise the uprising tensions in the region and have deep concerns over Iran’s role in current controversies;
- EU council is deeply concerned with the military support of Iran that benefits the rebel forces in Syria
- EU members are truly concerned with Iran ballistic missiles programs and invite Iran to obey the clauses of United Nations Security Council 2231 resolution;
- EU is deeply concerned with the implementation of human rights in Iran;
- EU supports the continuation of negotiations lead by itself with Iran on all the above facts;
– The Iranian government is to subsidise the nation’s almost bankrupt auto sector. After troubles that US withdrawal from JCPoA made for Iranian automakers (leaving of their international partners) and with FX jumps that lowered purchasing power of society to new lows, now president Rohani’s administration is to grant IRR 40,000 bn (USD 333 mn – USD/IRR 120,000) to part makers and other industry sectors in order to revive their production which is now lowered by 60%. This could make concerns of a deep recession in domestic commodities go away for a while.
– According to new economic stats, the volume of money supply in the Iranian economy reached IRR 17,252,000 bn (USD 143.77 bn – USD/IRR 120,000) showing 21.1% growth year over year (ending November 2018). This is while the monetary base of stamped a 22.6% rise over the same period. The share of “Cash” part in this growth is around 43.5% and “Near Money” part is responsible for 18.1%
In the Market
Stocks gained modestly today as investors put their half trust in the super interesting price levels, though it ran into some resistance at the 158-160K level during the session. TEDPIX (+0.09%) jumped for a soft 141.29 points and stood at 158,535.46 level to end a range-bound week almost unchanged. IFEX (+0.63%), on the other hand, showed relative strength and hiked for 12.06 points to close at 1,934.85.
Investors were completely cautious today as a long holiday is ahead, kept their investment for Monday afterwards. Some rumours about blue-chips of poor Auto (+1.53%) sector made retail side interesting in its components. being almost broke, giant Automaker, Iran Khodro (IKCO, +1.73%), is about to raise capital from asset re-valuation source in order to cover its huge pile of accumulated losses. Something that analysists believe “won’t work!” considering the poor fundamentals of the sector.
Finally, things were more heated over the parallel investment markets of gold coins and FX. As it was expected, effects of the EU promised INSTEX faded quickly made investors think about the real deal of Iran Economy. Therefore, the price of Bahar Azadi Gold coin and USD/IRR rate both hiked today. The Lotus Parsian gold-backed ETF (LOTF, +0.50%) was highly in demand and changed hands for almost 2.7 mn units.
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